Thank you, Professor Metrick, for the kind introduction and the opportunity to return to Yale to speak to the Yale Program on Financial Stability today.1 I have long admired and been a grateful consumer of all the insightful work you have done here since its inception in 2013. I know that a number of the staff of the Board of Governors have been contributors to, and are avid consumers of, your wor...
In analyzing Fischer's speech, it is essential to acknowledge the ongoing challenges central banks face in ensuring financial stability, especially in the context of nontraditional financial institutions like shadow banks. By emphasizing the importance of scenario analysis, Fischer highlights the need for policymakers to anticipate and address potential risks proactively. However, it's crucial to question whether such tools can fully account for the complexity and unpredictability inherent in th...